Inex Pharmaceuticals Corporation, a Canadian biopharmaceutical company, announced that the strategic partnership it has signed with Enzon Pharmaceuticals, Inc. to commercialize its proprietary oncology product Onco TCS has triggered the company's obligation to make a US$3 million cash payment to its former joint venture partner, Elan Corporation, plc.
David Main, Inex's president and CEO, said the terms of the agreement reached April 2003 with Elan also obligate Inex to make payments, in cash or shares at Inex's option, of US$2.5 million when the United States Food and Drug Administration (FDA) accepts the New Drug Application (NDA) for Onco TCS for review and US$2.5 million when the FDA approves Onco TCS. Beyond such payments, Elan has no rights to royalties on future sales on Onco TCS.